It is being finalised by State Manufacturing Competitive Council

The State government will announce an automotive sector specific policy soon to strengthen and deepen the matured manufacturing market, said Principal Secretary, Industries, Rajeev Ranjan, on Friday.

Delivering the keynote address at the fourth edition of Auto Serve 2010 conference, organised by the Confederation of Indian Industry (CII), he said that Tamil Nadu had emerged as the largest automotive manufacturer in the country and had a full eco-system in place. The new policy was being finalised by the State Manufacturing Competitive Council to serve the automotive sector effectively.

About 25 per cent of automobiles and 35 per cent of auto parts were manufactured in the State, and the government was keen on tapping the huge employment potential in the sector. It was also partnering with the private sector for skill development of over a lakh people in various sectors.

R. Seshasayee, past president, CII, called for huge investments in skill development to cope with major changes in the automotive manufacturing sector and the major role India had to play in the world automotive market.

The automotive sector should continue to work together as a networked body to manage and monitor the changes and challenges collectively. Besides, it should build on its capabilities to face the challenges.

Pradipta K. Mohapatra, past chairman, CII-SR, said Tamil Nadu had an annual production capacity for producing 12.8 lakh cars and 3.5 lakh commercial vehicles a year. Last year witnessed production of 5.6 lakh cars.

“Three cars are being produced every minute and one commercial vehicle, every 75 seconds. If we use full capacity, then the car production volume can be doubled. The automotive sector is geared to keep pace with this rapid growth by upgrading the skill levels of people at different levels to deliver enhanced customer satisfaction,'' he said. R. Dinesh, chairman, Auto Serve 2010, said the automotive sector had to take to new technologies and bridge the skill gap of employees. There was need for a new paradigm of public-private partnership for skill development.

To mark the occasion, Mr. Ranjan released a McKinsey report on ‘Opportunities in the Indian automotive aftermarket'.

Along with the conference, a three-day exhibition is also being held.

It showcases the latest technology/solutions in garage and service equipment, tools and auto spare parts, tyre service equipment, vehicle testing, vehicle care products and others.